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Forex
currency exchange is the biggest financial market in the word nowadays, with
daily turnover outstripping 1.9 trillion dollars. It’s basis are transactions
made 24 hours a day between banks and financial institutions called
Interbank. Interbank begins it’s day in Sydney, and continues through Tokyo and
New York to London along with awakening of other financial capitals.
Nowadays
numerous investors profit on currency transactions using unusual fluency of
Forex, its clarity and strong technical trend. Till now, according to huge
transaction units and high financial requirements, main beneficiaries of
currency market were banks, currency dealers and great speculators. The
development of computers and Internet enabled access to advantages of Forex for
numerous investors all over the world.
Forex Marker is OTC market (Over The Counter). It means that transactions are
realized by both sides via phone and/or electronic systems, and turnover is not
centralized. The trade starts in Sydney, next moves to Tokyo and London to close
the day in New York. Trade on Forex market lasts 5 day each week, starting on
Sunday at 11:00pm and ends on Friday at 11:00pm (local time).
Characteristic features of Forex.
Forex Marker is also called OTC market (Over The Counter). It means that
transactions are realized by both sides via phone and/or electronic systems.
Turnover is not centralized. Nowadays numerous investors profit on currency
transactions using unusual fluency of Forex, its clarity and strong technical
trend. The volume exceeding 50 times value of all American share’s markets
altogether ensures credibility of technical analysis, security of transactions
and the best protection against artificial price changing attempts.
One of the most significant aspects of Forex are risk limiting strategies.
Investors often use the “stop-loss” order and orders with price limit. High
turnover guarantees almost 100% realization of any defending orders and success
in investment strategies. Moreover, 24 hours a day, 5 days a week turnover cause
that so called price gaps (when closing price are significantly differs from
next day opening price) are very rare.
Next unique feature of Forex are strong trends and lack of bull market
and boom. Investors trade couples of currencies, so when one is falling the
second one is in increasing trend. This fact is important for investors, who
choose any trend (increasing or decreasing). You can make up your mind in any
moment which trend you want to bet on, according to where your strategy suits
best and where you feel comfortable
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